The following are selected accounts and balances for Jonah Company and Hill, Incorporated, as of December 31, 2024. Several of Jonah's accounts have been omitted. Credit balances are indicated by parentheses. Dividends were declared and paid in the same period. Accounts Revenues Cost of goods sold Depreciation expense Investment income Retained earnings, 1/1/24 Dividends declared Current assets Land Buildings (net) Equipment (net) Liabilities Common stock Additional paid-in capital Jonah $ (580,000) 276,000 104,000 Not given Hill $ (244,000) 98,000 52,000 0 (888,000) (604,000) 136,000 46,000 208,000 686,000 316,000 92,000 482,000 122,000 218,000 250,000 (384,000) (302,000) (284,000) (40,000) (50,000) (908,000) Assume that Jonah acquired Hill on January 1, 2020, by issuing 7,000 shares of common stock having a par value of $10 per share but a fair value of $100 each. On January 1, 2020, Hill's land was undervalued by $19,800, its buildings were overvalued by $30,800, and equipment was undervalued by $59,400. The buildings had a 10-year remaining life; the equipment had a 5-year remaining life. A proprietary database with an appraised value of $104,000 was developed internally by Hill and was estimated to have a 20-year remaining useful life. Required: a. Determine the December 31, 2024, consolidated totals for the following accounts: Revenues Cost of goods sold Depreciation expense Amortization expense Buildings Equipment Database Common stock Additional paid-in capital b. In requirement part (a), can the consolidated totals be determined without knowing which method the parent used to account for the subsidiary? c. If the parent uses the equity method, what consolidation entries would be used on a 2024 worksheet?
The following are selected accounts and balances for Jonah Company and Hill, Incorporated, as of December 31, 2024. Several of Jonah's accounts have been omitted. Credit balances are indicated by parentheses. Dividends were declared and paid in the same period. Accounts Revenues Cost of goods sold Depreciation expense Investment income Retained earnings, 1/1/24 Dividends declared Current assets Land Buildings (net) Equipment (net) Liabilities Common stock Additional paid-in capital Jonah $ (580,000) 276,000 104,000 Not given Hill $ (244,000) 98,000 52,000 0 (888,000) (604,000) 136,000 46,000 208,000 686,000 316,000 92,000 482,000 122,000 218,000 250,000 (384,000) (302,000) (284,000) (40,000) (50,000) (908,000) Assume that Jonah acquired Hill on January 1, 2020, by issuing 7,000 shares of common stock having a par value of $10 per share but a fair value of $100 each. On January 1, 2020, Hill's land was undervalued by $19,800, its buildings were overvalued by $30,800, and equipment was undervalued by $59,400. The buildings had a 10-year remaining life; the equipment had a 5-year remaining life. A proprietary database with an appraised value of $104,000 was developed internally by Hill and was estimated to have a 20-year remaining useful life. Required: a. Determine the December 31, 2024, consolidated totals for the following accounts: Revenues Cost of goods sold Depreciation expense Amortization expense Buildings Equipment Database Common stock Additional paid-in capital b. In requirement part (a), can the consolidated totals be determined without knowing which method the parent used to account for the subsidiary? c. If the parent uses the equity method, what consolidation entries would be used on a 2024 worksheet?
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter4: Balance Sheet: Presenting And Analyzing Resources And Financing
Section: Chapter Questions
Problem 14E
Related questions
Question
Transcribed Image Text:The following are selected accounts and balances for Jonah Company and Hill, Incorporated, as of December 31, 2024.
Several of Jonah's accounts have been omitted. Credit balances are indicated by parentheses. Dividends were declared
and paid in the same period.
Accounts
Revenues
Cost of goods sold
Depreciation expense
Investment income
Retained earnings, 1/1/24
Dividends declared
Current assets
Land
Buildings (net)
Equipment (net)
Liabilities
Common stock
Additional paid-in capital
Jonah
$ (580,000)
276,000
104,000
Not given
Hill
$ (244,000)
98,000
52,000
0
(888,000)
(604,000)
136,000
46,000
208,000
686,000
316,000
92,000
482,000
122,000
218,000
250,000
(384,000)
(302,000)
(284,000)
(40,000)
(50,000)
(908,000)
Assume that Jonah acquired Hill on January 1, 2020, by issuing 7,000 shares of common stock having a par value of $10 per
share but a fair value of $100 each. On January 1, 2020, Hill's land was undervalued by $19,800, its buildings were
overvalued by $30,800, and equipment was undervalued by $59,400. The buildings had a 10-year remaining life; the
equipment had a 5-year remaining life. A proprietary database with an appraised value of $104,000 was developed
internally by Hill and was estimated to have a 20-year remaining useful life.
Transcribed Image Text:Required:
a. Determine the December 31, 2024, consolidated totals for the following accounts:
Revenues
Cost of goods sold
Depreciation expense
Amortization expense
Buildings
Equipment
Database
Common stock
Additional paid-in capital
b. In requirement part (a), can the consolidated totals be determined without knowing which method the parent used to
account for the subsidiary?
c. If the parent uses the equity method, what consolidation entries would be used on a 2024 worksheet?
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